|
CARRYOVER/INTEREST
|
|
FAQ: |
ANSWER: |
|
Which projects allow the budget balance and interest to be amended/carried over into a current year project? |
Whether the remaining budget balance and earned interest is allowed to be amended/carried over into a current year project depends on specific program guidelines that are governed by State statute and Federal legislation. For grant specific carryover guidelines refer to the Multi Year Fund Carryover Matrix located as a download in the Grants Management Enterprise glossary. |
|
When can prior year carryover be amended into a current year project? |
Once the program office has approved the prior year Completion Report, that carryover amount indicated should be amended as soon as possible into the current year project. The program office prior year Completion Report approval notification can be received via email or by postal mail. |
|
How long can funds carryover for those grants that have a 27-month spending term? |
Only federal grants have a 27-month spending term, which starts the first fiscal year the grant/project is approved and then extends 27months out from that date. If a federal grant/project has a 27-month spending term the funds MUST be expended and/or amended by the end of that term or the funds expire. Once funds have expired all monies MUST be returned to the Arizona Department of Education.
E.g., a LEA was approved for a federal grant/project that has a 27-month spending term. The project was approved for FY02 with the begin date of July 1, 2001. The second year (FY03) the LEA did not apply and therefore did not receive any FY03 funds. Then, in the third year (FY04) the LEA did apply and was approved to receive funding. Even though the LEA did not receive funding the second fiscal year, any allowable carryover from the FY02 project would expire September 30, 2003 (FY04) because it is the end of the 27-month spending term. All funds should have been amended and approved prior, if not then remaining funds MUST be returned to the Arizona Department of Education. |
|
How often does interest earned on federal projects have to be returned to the Arizona Department of Education (ADE)? |
Interest earned on federal funds in excess of $100 per project must be returned to the ADE Accounting Office at least quarterly during the project period (Johnson O'Malley is currently exempt from this rule). If the interest in excess of $100 is returned at least quarterly, then in the Completion Report only state whatever interest has been earned on the project in the last quarter.
Interest earned on state funds may or may not be required to be returned to the ADE. See the Contacts section to contact the appropriate program office for specific guidelines. |
